How do franking credits work in relation to ASX dividend stocks?

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1 Answer 626
Bradley Clarke

Answered 8 months ago

Franking credits, also known as imputation credits, are a tax benefit offered to Australian shareholders when a company pays dividends. They represent the tax already paid by the company on its profits. Australian residents can use franking credits to offset their tax liabilities or claim a refund if the franking credits exceed their tax liability.

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